Abstract
This study addresses the question whether transparency matters among Chinese listed companies. We construct a comprehensive scorecard, based on the OECD Principles of Corporate Governance, in order to assess the transparency of 100 major Chinese listed companies. Based on the scorecard, we construct a Transparency Index (TI) which is used to assess these major Chinese listed companies during 2004-2007. The results reveal that there is a positive and significant relation between company transparency and market valuation. When we further split the TI into Mandatory and Voluntary Disclosure Indexes, it is found that market valuation is only related to the Voluntary Disclosure Index. Finally, we find that more profitable, overseas-listed, and companies with a separate CEO and board chairman tend to disclose more on a voluntary basis.
Original language | English |
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Pages (from-to) | 259-280 |
Number of pages | 22 |
Journal | Journal of Accounting and Public Policy |
Volume | 29 |
Issue number | 3 |
DOIs | |
Publication status | Published - Jun 2010 |
Scopus Subject Areas
- Accounting
- Sociology and Political Science
User-Defined Keywords
- China
- Corporate Governance
- Disclosure
- OECD Principles